Tobacco and life insurance: Here’s what you should know
Life insurance eligibility and rates are impacted by several factors, including your health. Since life insurance companies determine premiums based on risk, the healthier a person is, the cheaper life insurance will generally be. One of the questions on a life insurance application is whether you smoke or not, as well as the type of tobacco products you use. Since smokers statistically have a higher mortality rate than non-smokers, you can expect to pay a higher life insurance premium if you currently use tobacco or have a recent history of smoking. Here, Bankrate’s insurance editorial team breaks down life insurance for smokers.
Life insurance for smokers
Tobacco use remains the leading cause of preventable death in the U.S., contributing to nearly 480,000 deaths annually, according to the American Lung Association’s 2024 report. The impact of smoking on health is clear, and life insurance companies take these risks into account when determining premiums for smokers. If you smoke, expect to pay higher rates than non-smokers, as insurers generally categorize applicants into separate risk classes.
Common risk classifications are:
- Preferred Plus
- Preferred
- Standard Plus
- Standard
- Preferred Tobacco
- Standard Tobacco
For illustrative purposes, let’s say two individuals apply for the same $500,000 30-year term life insurance policy at the same life insurance company. These people have identical risk factors except one of them smokes, and the other doesn’t. The non-smoker may qualify for the Preferred class and pay around $26 per month. However, the smoker is placed into the Tobacco Preferred category and could pay closer to $86 per month due to the higher health risks associated with tobacco use. These higher premiums reflect the greater likelihood of tobacco users facing serious health issues, such as heart disease or cancer.
While smoking can drive up costs, some life insurance providers may offer more flexibility depending on the tobacco product used. And if you quit smoking, many insurers allow you to reclassify into a non-smoker rate category after a period of time — typically after being tobacco-free for at least a year.
How do insurance companies know if I use tobacco?
Most life insurance applications ask if you have used any tobacco products within the last 12 months. The insurance companies can verify your tobacco use —or lack thereof — through a medical exam and a review of your medical history. During the exam, insurers often test for nicotine and its byproduct, cotinine, to determine whether you’ve used tobacco. These tests are reliable indicators of smoking or other forms of tobacco use, helping insurers accurately assess your risk.
In addition to the medical exam, insurers may also request your medical records to see if your healthcare providers have noted any history of tobacco use.
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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Types of tobacco that life insurance companies test for
Life insurance companies evaluate all forms of tobacco use not just cigarette smoking when determining your risk class and premium rates. Tobacco use, in any form, often places you in a more expensive smoker classification. However, each type of tobacco product may impact your policy differently, depending on frequency and type of use.
Cigarettes
Life insurance underwriting classifies applicants as being either a tobacco risk or non-tobacco risk. Smokers who use cigarettes regularly are considered high risk to insure, so you’ll be placed into one of the tobacco risk classes if you apply for life insurance as a current cigarette smoker.
Cigars
If you smoke cigars irregularly, some life insurance providers might cut you a break. But underwriting guidelines usually state that you can only smoke a few cigars a year. And it’s possible that some life insurers won’t make a distinction between occasional cigar use and regular cigarette use.
E-cigarettes/vaping
Life insurance providers generally don’t separate vaping from regular cigarette smoking. If you use e-cigarettes or vaping products, expect that the provider will designate you as a smoker, just like if you used traditional tobacco.
Smoking cessation products
Products that help you quit smoking, like nicotine gum and nicotine patches, still leave traces of cotinine in your body. So, if you use these products, you’ll still probably be classified as a tobacco risk, even though there’s no tobacco in the products.
Chewing tobacco
Though chewing tobacco isn’t smoked, it contains nicotine and carcinogens, which can still have long-term health impacts, including oral cancers and heart disease. Insurers recognize these risks, so even though you’re not inhaling smoke, users of chewing tobacco are typically classified in the smoker category. This classification often leads to higher premiums, similar to what you’d pay as a cigarette smoker. If you chew tobacco regularly, it’s important to shop around, as some insurers may offer slightly more competitive rates than others for this type of use.
Pipe smoking
While pipe smoking may seem less harmful than cigarettes or cigars, it still involves inhaling nicotine and harmful substances. Health risks include respiratory problems and cancers, particularly of the lungs and throat. Most life insurance companies place pipe smokers in the smoker category, leading to higher premiums. However, if you only smoke a pipe on rare occasions, some insurers may allow you to qualify for non-smoker rates. It’s worth noting that honesty about your pipe smoking habits is essential, as inaccurate information could result in a denied claim.
Marijuana
Marijuana use presents a unique case when it comes to life insurance classifications. Occasional or social use might not automatically place you in a smoker category, depending on the insurer. They typically focus on two key factors: how the marijuana is consumed — whether smoked, vaped or taken as an edible — and how often you use it. For instance, smoking marijuana regularly will likely lead to a smoker classification, with higher premiums as a result. However, occasional use, especially in non-smoking forms, might allow you to qualify for non-smoker rates.
If you have a medical marijuana prescription, insurers usually focus more on the underlying health condition rather than the marijuana use itself. That said, the nature of the condition can still influence your classification. Chronic or severe health issues may lead to higher premiums, regardless of how you use marijuana. As with all substances, it’s important to be upfront about your usage when applying for life insurance.
How long does nicotine stay in your system?
The time it takes for nicotine to leave your system depends on factors like how much you’ve used and your body’s ability to process it. Life insurance companies often test for nicotine or cotinine using various methods, and the detection time varies depending on the test.
Here’s a breakdown of common tests and how long nicotine or cotinine can be detected:
- Blood test: Nicotine is typically detectable for one to three days after use, while cotinine can last up to 10 days.
- Urine test: Nicotine and cotinine are usually undetectable after three to four days, but this may extend if menthol cigarettes are involved.
- Saliva test: Saliva tests are considered highly sensitive and can detect cotinine for up to four days.
- Hair test: Hair tests are reliable for long-term detection, showing nicotine use for one to three months. In some cases, nicotine can be detected for up to 12 months.
To qualify for non-smoker rates, most life insurance companies require you to be tobacco-free for at least 12 months. Even if tests no longer show nicotine, being honest about your smoking history is critical. Lying could result in claim denials or even legal consequences due to insurance fraud.
Can I still get life insurance if I smoke?
You may still be able to get life insurance if you smoke, but keep in mind you might face a higher premium. Every life insurance company has a different underwriting process, so each company will determine your eligibility and rate based on your level of risk. Because life insurance companies underwrite tobacco use differently, it may pay to shop around and get multiple quotes.
How former tobacco users can get the same rates as non-users
When you sign up for a new life insurance policy, the provider will probably ask if you’ve used nicotine in the last 12 months. To be considered a non-smoker for life insurance, you’ll typically need to be nicotine-free for at least a year.
If you already have a life insurance policy and you’ve quit smoking, you can ask your provider for a rate reconsideration once you think you will test clean for nicotine. Again, 12 months is typically the minimum timeframe insurers prefer you to be tobacco-free.
At this point, your provider will likely require you to take another medical exam. You also have the option to search for a different provider and start fresh with a new non-smoker life insurance policy. But it’s important not to cancel your current policy until a new one is 100 percent active. You don’t want to be left uninsured.
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